How do i convert bitcoin to us dollars on coinbase
What’s the difference between the Coinbase app and the Coinbase Wallet app?
The Coinbase app (available on iOS and Android) is the company’s product for individuals looking to buy or sell cryptocurrencies, also available at Coinbase.com. It is an easy, secure, regulated on-ramp to crypto using US dollars or other local fiat currencies. You can safely store crypto on Coinbase so you don’t have to worry about managing your own private keys. Coinbase.com and the mobile apps are available in more than 100 countries.
The Coinbase Wallet app is a separate, standalone app that allows users to store, or custody, their own crypto, and explore the decentralized web with a dapp browser. You do not need a Coinbase account to use the Coinbase Wallet app. Coinbase Wallet helps users manage their own private keys and store their crypto assets directly on their devices, not with a centralized brokerage or exchange. You cannot connect Coinbase Wallet to your bank account to buy or sell cryptocurrencies with US Dollars or other fiat currencies. You can download and use Coinbase Wallet anywhere in the world.
It’s hard to believe that you still had to convert your BTC into USD in order to buy ETH on Coinbase. The company is finally adding direct cryptocurrency-to-cryptocurrency conversions.
The feature works with Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), 0x (ZRX) and Bitcoin Cash (BCH). It is only available to U.S. customers for now, but the company plans to roll out the feature to other countries too.
Let’s look at the fees more closely. If you live in Europe or the U.S., every time you buy or sell cryptocurrencies using USD or EUR, you pay at least 1.49 percent in fees on top of the spread (the difference between the highest selling price and the lowest purchasing price). Fees are even higher if you’re using a credit or debit card.
Coinbase says that the spread between a fiat currency and a cryptocurrency should be around 0.5 percent but may vary depending on the trading pair and the order queue.
If you buy or sell less than 200 USD or equivalent, fees get much more expensive. For instance, a $10 order will generate $0.99 in fees, or 9.9 percent. Customers pay 3 percent in fees for a $100 order.
But the good news is that it’s a completely different story with token-to-token transactions. Coinbase doesn’t charge you any markup fee — but there’s some inevitable spread. And with some obscure trading pairs (exchanging ZRX for BCH for instance), you might end up paying around 1 percent in spread. Still, it’s a much better user experience for those who just want to trade on Coinbase.
Without even mentioning other exchanges, Coinbase Pro users have been able to trade between multiple cryptocurrencies for a long time. But Coinbase is still the entry gate for many new cryptocurrency users.
Disclosure: I own small amounts of various cryptocurrencies.
Coinbase Commerce, the exchange operator’s payment service for merchants, will now let users convert cryptocurrencies to fiat currencies and stablecoin from within the platform.
Previously, merchants had to move their crypto payments to Coinbase’s exchange platform for conversions. Now they can do them without having to leave the Commerce platform, Coinbase announced in a blog post shared with The Block on Monday.
Merchants can directly connect their Coinbase.com accounts with Coinbase Commerce and convert their crypto payments into U.S. dollars (USD), euros (EUR), British pounds (GBP), and USD Coin (USDC) stablecoin. Coinbase said it would charge a 1% fee for conversions.
Integrations that will also allow merchants with Coinbase Commerce accounts to use Coinbase Pro and Coinbase Prime for conversions and withdrawals are coming “soon,” according to exchange operator.
Coinbase Commerce currently supports bitcoin (BTC), bitcoin cash (BCH), ether (ETH), litecoin (LTC), DAI, and USDC for payments. The platform is used by more than 8,000 merchants, according to its website.
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.